Implementation of VAT procedure on credit sales

Although the payment of VAT on credit sales is a matter that was announced a little more than two years ago, it was not until last October 2024 that the practical use of this model would be finalized at standard form D104, Certificate of Value Added Tax.

We must remember that on May 25, 2022, Law No.

This procedure is an optional tool aimed only at those taxpayers who are classified as independent workers, professional service providers and micro, small and medium companies or registered agents with the MEIC or the MAG.

The aim of the reform was to benefit this group of taxpayers, so that, in the case of VAT credit sales, they would be able to pay that tax up to 90 days after the distribution. of the electronic invoice, and if you receive full or partial payment in advance, declare the individual tax on form D104 for the month in which you received the payment.

In addition to the above, on June 12, 2023, Resolution MH-DGT-RES-0013-2023 was published, with the purpose of introducing two new sales conditions for related electronic receipts to sell credit.

However, to this point the published provisions did not consider the practical use of this model and it was until March 12, 2024, that Government Decree No. 44392-H into existence, with the purpose of reforming the Rules of Law. of the Value Added Tax (RLIVA), No. 41779, and include the practical provisions of the VAT method on credit sales.

By adding article 40 bis to the RLIVA, the operations relating to the fixed tax were established with the aim of changing that tax by deducting the corresponding VAT amount from credit sales unpaid and adding the tax to those who have been suspended in whole or in part, or who have exceeded the maximum period of 90 days.

However, despite the above, in the D104 form there were restrictions to make the changes indicated by the rules, and it was not until the first days of last October which it was said that changes could be added to the form due to the introduction of the following three. boxes in the “Tax decision” section:

– Tax on the sale of credit of the unpaid period (Law No. 10144)

– Tax on credit sales from previous periods canceled (Law No. 10144)

– Tax on credit sales from previous periods (Law No. 10144)

It should be considered that there is one transitional provision in Government Order No. 44392-H, which clearly indicates that the VAT procedure on credit sales could not be applied until the Tax Administration implemented the necessary changes in the form, which would be expressed through its resolution of forthcoming general area. However, it is debatable that the law that introduced this case has been in force since 2022 and that its validity did not depend on the provisions established by the regulations.